Docket OST-2010-0124

 

DUNS #071607675 

New York Congressional District #25 

Legal Sponsor: City of Syracuse, New York 

Proposal Under The 

Small Community Air Service Development Program 
 

 Proposal Under The Small Community Air Service Development Program 

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Table of Contents 

PROPOSAL SUMMARY INFORMATION 3

Airport and Community Name 3

Community Support 3

Statement of Air Service Deficiency 3

Proposed Solution 4

Project Contact 4

SYR CATCHMENT AREA DESCRIPTION 5

Geographic Location 5

Population & Demographics 6

Economic Base 7

Higher Education 9

Military Presence 9

Retail 10

SYR Catchment Area: Dependent on Air Transportation 10

AIR SERVICE TRENDS & CHALLENGES 11

Current Air Service at Syracuse 12

Service & Capacity Trends at Syracuse Hancock International Airport 13

Higher Average Fares at SYR Relative to Other Thruway Corridor Airports 16

The Canadian Factor 18

Negative Enplanement Trends at SYR 19

Previous Air Service Development Activities at SYR 20

PLAN TO ADDRESS AIR SERVICE DEFICIENCIES 21

Recapping the Challenge Facing SYR 21

Plan to Address Deficiency 21

Objective: Access to An Additional Low-Fare Airline Network 22

AirTran Airways – Baltimore (BWI) 23

Frontier Airlines – Denver (DEN) and/or Milwaukee (MKE) 24

Southwest Airlines – Baltimore (BWI) and/or Chicago (MDW) 25

Spirit Airlines – Fort Lauderdale (FLL) 26

PROGRAM ADMINISTRATION PLAN 27

Proposed Use of Grant Funds 27

Program Management 27

Promotional Support for New Service 28

Project Timeline 29

Project Monitoring 29

Continuation of Project Activities After The Grant Period 29

APPENDIX B 30

 
 

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Proposal Summary Information 

Airport and Community Name 

City of Syracuse 

Syracuse Hancock International Airport

1000 Col. Eileen Collins Boulevard 

Syracuse, New York 13212 

Tel. (315) 454-3263 

Fax: (315) 454-8757 

DUNS #071607675 

New York Congressional District #25 

The City of Syracuse Department of Aviation (hereafter referred to as “the City”) as the owner 

and operator of Syracuse Hancock International Airport (SYR) is the official sponsor of this grant 

application. Syracuse Hancock International Airport is the primary gateway for Central New York 

and serves a population of approximately 1.5 million people and a diverse economy anchored 

by education, manufacturing, services, research, biotechnology, and clean and renewable 

energy. 

Community Support 

The CenterState Corporation for Economic Opportunity (CEO) is partnering with the airport in 

submitting this proposal and providing matching funds for the grant. CenterState CEO is a nonprofit regional growth organization that sets the regional economic development agenda, 

communicates business priorities to community leaders, pursues strategic investments, and 

responds to meaningful opportunities for the benefit of the region. 

Over 65 member companies of CenterState CEO have contributed to provide the matching 

community funds in this SCASD proposal. 

Statement of Air Service Deficiency 

New York’s “Thruway Corridor” runs east to west along Interstate 90 and is anchored by four 

commercial service airports (from east to west): Albany International Airport, Syracuse Hancock 

International Airport, Greater Rochester International Airport, and Buffalo Niagara International 

Airport. Of these airports, SYR has the lowest number of nonstop destinations, lowest amount of 

capacity, smallest percentage of capacity provided by low-fare carriers, smallest percentage of 

capacity operated with mainline jet aircraft, and the highest average fares. 

The air service deficiency at Syracuse Hancock International Airport results in significant 

amounts of traffic leakage to other airports along the New York State Thruway. This results in 

artificially low enplanements giving both incumbent and potential new-entrant carriers the 

perception that the Syracuse market generates low levels of demand relative to its peers along 

the “Thruway Corridor.” Additionally, because traffic leakage results in fewer passengers 

utilizing SYR facilities it results in a higher cost per enplanement relative to the other airports. 
 

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Proposed Solution 

The SCASD grant funds requested herein will be used to provide a risk abatement fund for a 

low-fare carrier to initiate service at Syracuse Hancock International Airport, supported with 

marketing activities intended to generate awareness of the new service. The airport and its 

community partners believe that such service can materially reduce current levels of traffic 

leakage and create an overall strong competitive environment at SYR that benefits consumers 

of air transportation throughout Central New York. 

The City is requesting $1,000,000 in (SCASD) program funds in this grant proposal to be 

matched with $300,000 in cash from CenterState CEO. Syracuse Hancock International Airport 

will also contribute $750,000 in fee waivers and other community partners will provide $250,000 

“in-kind” marketing support, resulting in a total project fund of $2,300,000. 

Project Contact 

The City and its community partners appreciate the opportunity to submit this proposal and look 

forward to favorable consideration by the Department. Correspondence regarding the contents 

of this proposal should be directed to: 

Ms. Christina Reale 

Public Information Officer 

City of Syracuse, Department of Aviation 

1000 Col. Eileen Collins Boulevard 

Syracuse, New York 13212 

Tel. (315) 454-3263 

Fax: (315) 454-8757 

Email: realeC@syrairport.org 

The DUNS number appearing on the cover of this application is that of the City of Syracuse 

which is shared by the Department of Aviation. Any information related to the DUNS number 

should be directed to: 

Janet Burke 

Acting Director 

City of Syracuse, Bureau of Research 

233 E. Washington Street 

Room 419 

Syracuse, New York 13202 

Tel: (315) 448-8020 

Fax: (315) 448-8008 

 
 

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SYR Catchment Area Description 

Geographic Location 

Syracuse Hancock International Airport is located in Upstate New York, approximately 

equidistant between Buffalo to the west and Albany to the east. The airport is advantageously 

located near the intersection of Interstate 90 (New York State Thruway) oriented east and west 

and Interstate 81 oriented north and south. 

Primary Air Service Catchment Area

Syracuse Hancock International Airport



SYR Primary Catchment Area

The airport’s position near the intersection of two interstate highways allows it to serve a wide 

catchment area that stretches east past Utica and Rome, west approximately halfway to 

Rochester, south past Cortland, and north to the Canadian border.1

 As will be highlighted later 

in this proposal, the reach of SYR actually extends across the Canadian border to include the 

communities of Kingston, Brockville, Cornwell and Belleville, Ontario as a result of taxes 

imposed on air travel by the Canadian government and which makes travel to/from SYR a 

(relative) bargain. 

 

1

Note that the catchment area includes Watertown, NY, a recipient of EAS-subsidized air service by Cape Air. Syracuse Hancock 

International Airport does not believe that granting the SCASD funds requested in this proposal will negatively impact the EASsubsidized service at Watertown because that service operates to the state capital in Albany at very reasonable fares and provides 

customers with the multiple connecting opportunities, including with Southwest Airlines albeit on an “end-to-end” ticketing basis. 
 

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As will also be detailed later in this proposal, the proximity to the New York State Thruway can 

(and often does) work against Syracuse Hancock International Airport. The ease of access to 

other Thruway Corridor Airports that this highway facilitates results in a high level of traffic 

leakage as residents of the SYR primary catchment area seek out the greater choice of carriers, 

nonstop destinations, and lower fares that are available at Albany, Rochester, and Buffalo. 

Population & Demographics 

Approximately 1.5 million people reside within the primary 

catchment area of Syracuse Hancock International 

Airport. This population has an average per capita 

income of approximately $22,631 annually and average 

household income of $56,101 annually.2

The core of the catchment area is the Syracuse 

Metropolitan Statistical Area (MSA), which is presently 

ranked 81st in the United States based on population. The 

Syracuse MSA had estimated population in 2008 of 

735,777.3 

The Syracuse region has been recognized in numerous

national publications including: 

• Named most affordable city for housing in the United 

States by CNN Money in August 2010; 

• In 2009, Next Generation Consulting ranked 

Syracuse 14th among “mighty micros” for in its “Next 

Cities” rankings of the best places for young 

professionals to live and work; 

• Places Rated Almanac listed Syracuse in its top 10% of best places to live; 

• In 2009, Forbes rated Syracuse the 129th best city in the country for jobs (out of 336 

ranked), an overall ranking improvement of 121 places; 

• Parenting magazine included Syracuse among its top 100 best cities for raising small 

children in 2010, based on an assessment of affordable living, healthy economy, low crime 

rate, clean environment, and good schools; 

• In 2008, Popular Science ranked Syracuse as the 17th “greenest city” in the United States; 

• Newsweek magazine included eight of the area’s high schools in “America’s Top Public 

High Schools.” 

 

2

 SOURCE: Microsoft MapPoint 

3

 SOURCE: ESRI Database of Census Data 

The City of Syracuse is the core of the 

Hancock International Airport catchment 

area and is undergoing an economic and 

cultural renaissance. 
 

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Economic Base 

The catchment area of Syracuse Hancock International Airport serves a diverse and growing 

economic base that ranges from farming and agriculture to the latest research in bioscience and 

renewable energy. Major employers in the airport catchment area listed on the table on the next 

page. 

Renewable Energy

Renewable energy in particular has become a focus of the 

Central New York economy, anchored by the Syracuse 

Center of Excellence in Environmental and Energy 

Systems (SyracuseCoE). Representing a federation of

over 200 firms, organizations, and institutions, 

SyracuseCoE is focused on research, product 

development, commercialization assistance, and 

education programs related to systems that monitor and 

control thermal comfort, air quality, lighting, sound, water 

quality, and innovative energy systems, including 

renewable and clean energy sources from wind and solar 

power to geothermal and fuel cells. 

In March 2010, SyracuseCoE moved into a 55,000 square 

foot, $41 million dollar headquarters building in downtown 

Syracuse that includes office space, laboratories, and 

classrooms. 

Biosciences

The biosciences have a strong presence in the Syracuse area economy, including a 90-acre 

campus in East Syracuse of Bristol-Myers Squibb. At this location, the company conducts in 

biotechnology development and manufacturing operations, and pharmaceutical research 

laboratories, primarily in the areas of oncology and auto-immune diseases. 

Another is Syracuse-based Hanford Pharmaceuticals, which specializes in the manufacture of 

antibiotics and compounds that require advanced sterile production. Its 192,000 square feet of 

facilities are spread across three locations in Syracuse and the company is a leading producer 

for firms such as American Home Products, Pfizer, Bristol-Myers Squibb, Geneva, and Watson. 

It also manufactures veterinary products that are marketed under the USVet brand. 

Building on this established base, The Central New York Biotechnology Research Center is a 

three-phase plan that envisions an $80 million, 240,000-square-foot facility containing research 

labs, technology-transfer space, offices, and conference rooms for biotechnology research and 

economic development efforts. The first phase of this project, currently under construction with 

occupancy expected in early 2011, will house between 20 and 30 companies and will target 

spin-off companies from area colleges, including SUNY Upstate Medical University, SUNY 

College of Environmental Science & Forestry, Syracuse University, and SUNY College of 

Agriculture & Technology at Morrisville.

The $41 million headquarters of the 

Syracuse Center of Excellence in 

Environmental and Energy Systems, 

opened in March 2010. 
 

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Major Employers in SYR Catchment Area 

Firm City # of 

Employees Additional Information 

SUNY Upstate Medical University Syracuse 6,400 

Academic health science and acute 

referral center; recently opened $120 

million Galisano Children’s Hospital 

Syracuse University Syracuse 5,925 

Higher education; over $400 million in 

construction recently completed or 

currently underway on campus 

Wegman’s Food Markets Liverpool 3,760 10 food/pharmacy retail locations 

throughout Central New York 

St. Joseph’s Hospital Health Center Syracuse 3,150 Presently undergoing $220 million 

expansion 

Crouse Hospital Syracuse 2,400 Currently undergoing $35 million surgical 

center expansion 

Lockheed-Martin MS2 Liverpool 2,350 Systems integrator of network-centric 

naval combat systems 

National Grid Syracuse 1,850 Electric and gas utility 

Carrier Corporation East Syracuse 1,500 

Research & development for air 

conditioning, heating and refrigeration 

equipment 

L.& J. G. Stickley, Inc. Manlius 1,445 Manufacturer of fine furniture 

The Hartford Financial Service Syracuse 1,200 Investments and insurance 

Syracuse VA Medical Center Syracuse 1,150 $78 million northeast regional spinal cord 

injury center currently under construction 

Welch Allyn Skaneateles 

Falls 1,100 

Diagnostic medical instruments, 

automotive material handling devices, 

and specialty lamps and fiber optics; 

currently undergoing $30 million 

expansion of headquarters and 

manufacturing facilities 

AXA Equitable Life Insurance Syracuse 1,100 Life insurance and financial products 

Syracuse Research Corporation 

(SRC) Syracuse 1,100 Information technology 

Commed Corporation Utica 1,000 Manufacturer of medical equipment and 

devices 

Excellus (Blue Cross & Blue Shield) Syracuse 980 Insurance and health care 

Anheuser-Busch Inc. Baldwinsville 940 Brewery 

Remington Arms Herkimer 900 Firearms manufacturing 

Bank of New York East Syracuse 850 Back office financial operations 

Pall Corporation Cortland 800 Filtration, separation, and purification 

systems 

Bristol-Myers Squibb East Syracuse 820 Antibiotic manufacturer; research and 

development of new pharmaceuticals 

Eagle Comtronics Clay 800 Cable television components 

Sensis Corporation Syracuse 600 Surveillance equipment 

Anaren Microwave East Syracuse 600 

Electronic combat warning and targeting 

receiver systems for military aircraft, 

ships, submarines and combat vehicle 

systems 
 

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Higher Education 

The catchment area of Syracuse Hancock International Airport includes a number of colleges 

and universities that rely on air transportation, not only for their student populations, but also for

faculty and staff, recruiters, athletic events, and associated research activities. The major 

institutions within the catchment area are summarized on the table below: 

Syracuse Area College & University Enrollment 

College/University Total Enrollment 

Syracuse University 19,600 

State University College at Oswego 8,282 

State University College at Cortland 7,224 

LeMoyne College 3,544 

SUNY College of Agriculture & Technology at Morrisville 3,262 

Colgate University 2,810 

Utica College 2,505 

SUNY College of Environmental Science & Forestry 2,140 

Hobart William & Smith College 2,091 

Hamilton College 1,812 

SUNY Upstate Medical University 1,445 

Cazenovia College 1,205 

Wells College 416 

In addition to those listed on the table above, SYR serves as the gateway to the air 

transportation system for students from the following colleges and universities in the 

surrounding region: Cornell University (20,358 enrollment), Clarkson University (3,200 

enrollment), St. Lawrence University (2,400 enrollment), Ithaca College (6,408 enrollment), and 

SUNY Binghamton (12,400 enrollment). 

When community college enrollment is factored in, the catchment area of Syracuse Hancock 

International Airport has the third highest concentration of higher education institutions in the 

United States, behind only Boston and San Francisco. 

Military Presence 

Fort Drum Army Base is located one-hour north of Syracuse and is a major generator of 

passenger enplanements for Syracuse Hancock International Airport. The base’s mission 

includes command of active component units assigned to the installation, administrative and 

logistical support to tenant units, support to tenant units, support to active and reserve units 

from all services in training at Fort Drum, and planning and support for the mobilization and 

training of almost 80,000 troops annually. 

Fort Drum is the largest single-site employer in New York State, with nearly 30,000 civilian and 

military personnel, with additional growth expected to occur by 2013 as a result of the Base 

Realignment and Closure (BRAC) process. To support this growth, the base recently completed 

over $500 million in expansion consisting primarily of additional housing. 
 

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Syracuse Hancock International is also a joint-use facility with the New York Air National Guard 

174th Fighter Wing. This facility recently transitioned to unmanned MQ-9 “Reaper” drones and 

completed construction of an $8.0 million training and maintenance facility which will serve as 

only two such units for active and reserve military in the United States. 

Retail 

Syracuse is also the retail hub of Upstate New York, anchored by the Carousel Center mall 

which is presently undergoing a major expansion that will transition it to the “Destiny USA” retail 

resort and make it one of the largest retail complexes in the United States. 

The first phase of the expansion, which is slated to open 

in spring 2011, involves an investment of $540 million 

and will include over 2.4 million square feet of retail, 

dining, and entertainment venues. Two additional growth 

phases are planned. 

A unique component of the Destiny USA development is 

its “green credentials.” In 2007, the project was precertified LEED Gold by the United States Green Building 

Council (USGBC) and final certification will occur when 

construction is completed. During the construction

process, Destiny USA has become the 5th largest 

purchaser of green power in New York State, recycled 

95% percent of all construction debris and waste, and 

used hybrid and biodiesel powered vehicles. 

SYR Catchment Area: Dependent on Air Transportation

As outlined, the catchment area of Syracuse Hancock International Airport is home to a diverse 

and expanding economic base. The City and its community partners clearly understand, 

however, that economic stability is fragile and that competitive air service is a critical component 

in business recruitment and retention. 

The Small Community Air Service (SCASD) grant funds requested in this proposal, along with 

the matching funds from the community partner, are intended to ensure that Syracuse Hancock 

International Airport can continue to play a role as an economic engine for all of Central New 

York by putting in place a financial mechanism to recruit new, low-fare airline service. 

When the first phase opens in spring 2011, 

Destiny USA will become one of the 

premiere retail destinations in the United 

States. 
 

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Air Service Trends & Challenges 

As noted earlier in this proposal, Syracuse Hancock International Airport is conveniently located 

near the convergence of Interstate 90 and Interstate 81. While this would generally be to an 

airport’s favor, the fact that SYR has measurably lower levels of air service than airports in 

Albany, Rochester, and Buffalo (and particularly lesser levels of low-fare service) means that 

Interstate 90 actually functions as a conduit for traffic leakage from Syracuse. The geographic 

position of the Thruway Corridor Airports is illustrated on the map below. 

New York State “Thruway Corridor” Airports

Buffalo Niagara 

International Airport

Albany International Airport

Syracuse Hancock 

International Airport

Greater Rochester International Airport

Approximate Drive Times: SYR and Thruway Corridor Airports

Alternative Airport Mileage Approx Travel Time 

Albany International Airport 145 2 hours 35 minutes 

Greater Rochester International Airport 93 1 hour 30 minutes 

Buffalo Niagara International Airport 142 2 hours 30 minutes 

SOURCE: Microsoft MapPoint 

By recruiting additional low-fare service with the assistance of SCASD grant funds requested in 

this proposal, the City and its community partner believe that traffic can be recaptured and the 

airport can play a significant role in ensuring continued economic vitality for all of Central New 

York. 

 
 

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Current Air Service at Syracuse 

As of August 2010, Syracuse Hancock International Airport was served by seven airline brands. 

These carriers provide an average of 3,774 departing seats on 61 daily departures to 15 

nonstop destinations. 

Current Scheduled Air Service

Syracuse Hancock International Airport: August 2010

SOURCE: Innovata, LLC via

NOTE: Map illustrates domestic routes only; 

Air Canada provides service to Toronto

Carrier Destination Weekly 

Departures

Weekly 

Seats

Average Seats 

per Departure

American Chicago 33 1,536 46.5

Air Canada Toronto 14 252 18.0

New York - JFK 27 3,148 116.6

Orlando 7 1,092 156.0

Cleveland 20 883 44.2

Newark 27 1,288 47.7

Atlanta 27 1,890 70.0

Cincinnati 6 300 50.0

Detroit 33 2,264 68.6

New York - JFK 28 1,426 50.9

Washington - IAD 28 1,640 58.6

Chicago 42 2,596 61.8

Boston 19 646 34.0

Charlotte 15 1,748 116.5

Washington - DCA 27 1,721 63.7

New York - LGA 28 1,257 44.9

Philadelphia 48 2,730 56.9

Total 429 26,417 61.6

Delta

United

US Airways

Continental

JetBlue

As illustrated on the table below, service levels at Syracuse Hancock International Airport are 

the lowest among all Thruway Corridor Airports and are key contributor to the significant 

amounts of traffic leakage experienced at SYR. 

Comparison of Scheduled Airline Service 

Thruway Corridor Airports: August 2010 

Airport SYR BUF ROC ALB

Airline Brands 7 8 8 7

Nonstop Destinations 15 23 20 25

Avg Daily Departures 61 105 72 69

Avg Daily Departing Seats 3,774 9,666 4,788 4,684

Avg # of Seats per Departure 61.6 91.6 66.6 68.3

% Capacity Provided by LCC 16.1% 48.2% 29.0% 37.2%
 

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Of particular significance on the preceding table is the percentage of capacity provided by lowfare carriers (otherwise referred to as “LCCs”). The percentage of low-fare capacity at SYR is a 

relatively meager 16.1% with the nearest being 29% at ROC, nearly double that of Syracuse. 

Moreover, in excess of one-third of the total seats available at ALB and BUF are provided by 

low-fare carriers. The SCASD grant funds requested in this proposal are intended to “close the 

gap” between SYR and the other Thruway Corridor Airports by facilitating the recruitment of an 

additional low-fare carrier. 

Service & Capacity Trends at Syracuse Hancock International Airport 

The current service level deficiencies at Syracuse Hancock International Airport relative to peer 

airports long the Thruway Corridor is indicative of an ongoing trend that includes discontinuance 

of nonstop markets and an overall decline in available seats. 

Overall Market Capacity

Since the beginning of 2007, the average number of monthly departing seats at Syracuse 

Hancock International Airport has declined by 26,232, or 18.1%. In comparison, monthly 

departing seats at Albany International Airport and Greater Rochester International Airport have 

declined by lesser percentages, 13.7% and 13.9% respectively. The number of monthly seats at 

BUF has actually increased over the same period, by 6.2%. 

Scheduled Service Capacity Trend at SYR

Monthly Departing Seats: Jan 2007 – Aug 2010

SOURCE: Innovata, LLC via

145,106

118,874

90,000

100,000

110,000

120,000

130,000

140,000

150,000

January 2007

ALB: 167,786

ROC: 174,843

BUF: 278,145

August 2010

ALB: 144,824

ROC: 150,529

BUF: 295,321

 
 

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Discontinued Routes Detail

It is important to note that the decline in number of seats at Syracuse is not simply a factor of 

reduced frequencies or average number of seats per departure. Nonstop service from SYR to a 

number of key destinations has been discontinued in recent years, as illustrated on the table 

below.4

Summary of Discontinued Nonstop Routes 

Syracuse Hancock International Airport: Aug 2005 – Aug 2010 

SOURCE: T-100 data, 

The loss of service in 2005 left SYR as the only the Thruway Corridor Airport without flights to 

Baltimore and, in fact, Syracuse is the largest city in the northeast without nonstop service to 

BWI. There are low-fare air service recruitment targets for Syracuse Hancock International 

Airport that have large operations at BWI and which represent candidates for restoring nonstop 

flights. The availability of SCASD grant funds requested in this proposal would significantly 

assist in such recruitment efforts. 

 

 

4

 Data does not include a number of regional routes that were operated by Commutair dba US Airways Express and Continental 

Connection as this carrier was not required to filed T-100 data. Example markets include Newburgh, White Plains, Buffalo, Islip, etc. 

Market Carrier Date Discontinued

Baltimore US Airways November 1, 2005

Dallas/Fort Worth American September 1, 2008

Fort Lauderdale jetBlue January 1, 2009

Hartford/Springfield US Airways September 1, 2008

Minneapolis/St. Paul Northwest November 1, 2005

Pittsburgh US Airways September 1, 2008
 

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Dominance of Regional Jets at SYR

An additional challenge for Syracuse Hancock International Airport is the overwhelming 

dominance of regional jets that airlines schedule into the market. During the month of August 

2010, a full 62% of capacity was provided by regional jet aircraft compared to 51%, 44%, and 

24% at Rochester, Buffalo, and Albany, respectively.

5

It is also significant to point out that SYR 

is the only Thruway Corridor Airport that neither Delta Air Lines nor United Airlines operate 

mainline equipment. 

Capacity by Aircraft Type

Thruway Corridor Airports: August 2010

SOURCE: Innovata, LLC via

Mainline 

Jet

25%

Propeller

13%

Regional 

Jet

62%

Syracuse

Propeller

6%

Regional 

Jet

24%

Mainline 

Jet

70%

Buffalo

Propeller

10%

Regional 

Jet

51%

Mainline 

Jet

39%

Rochester

Propeller

11%

Regional 

Jet

44%

Mainline 

Jet

45%

Albany

The relatively small increments of capacity place Syracuse area consumers at a significant 

disadvantage when searching for low fares. In particular, it often means that price sensitive 

consumers are required to travel at off-peak times in order to obtain a fare that is competitive 

with those available at ALB, ROC, or BUF. 

High Load Factors at SYR

Another factor that inhibits the ability of Central New York consumers in obtaining reasonable 

fares is the high average load factors experienced on the current air service at Syracuse 

Hancock International Airport. For the year ending May 31, 2010, the average load factor at 

SYR was 77.2%. 

 

5

 Mainline aircraft = Boeing 737, Embraer 190, Airbus A319/A320 series; Regional jet = Embraer 170/175, CRJ 200/700/900, and 

Embraer 145; Propeller = DeHavilland Dash 8 series, Saab 340, and Cessna 402C 
 

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Syracuse Hancock International Airport

Scheduled Service Load Factors: YE May 31, 2010

SOURCE:

92.0%

41.7%

79.8%

83.9% 86.1%

71.8%

86.2%

79.2% 79.5%

75.0%

71.2%

60.6%

84.5% 84.1% 82.8%

71.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Market Avg = 77.2%

The problem of high load factors is particularly pronounced to connecting hubs which provide 

critical connectivity throughout the national air transportation system. This includes Atlanta 

(92.0%), Charlotte (83.9%), Detroit (86.2%), and Chicago (84.1%). When non-hub markets are 

excluded (Washington-National, New York-LaGuardia, and Boston), the market level average 

load factor for SYR increases to 79.5%. 

Clearly the market area served by Syracuse Hancock International Airport can support 

additional service and the SCASD grant funds requested in this proposal are intended to assist 

in the recruitment of such service, specifically an additional low-fare carrier. 

Higher Average Fares at SYR Relative to Other Thruway Corridor Airports 

The overall impact of percentage of low-fare seats offered in each of the Thruway Corridor 

airports is best measured by average fare paid. Using this metric, consumers at SYR on paid a 

higher average fare in domestic markets that their peers at any of the other Thruway Corridor 

Airports during the 12-months ending March 31, 2010. 
 

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Average OW Gross Fares

Thruway Corridor Airports: YE March 31, 2010

SOURCE:

$147.63

$166.53

$204.00

$198.10

$125.00

$150.00

$175.00

$200.00

$225.00

BUF ROC SYR ALB

28% lower 

than SYR

18% lower 

than SYR

3% lower 

than SYR

NOTE: Average OW fare includes taxes and fees (i.e., segment fee, security, PFC, etc.) Average OW Gross Fare Paid – All Passengers/All Markets

As the data illustrates, consumers in the catchment area of Syracuse Hancock International 

Airport have sufficient economic motivation to utilize other airports, particularly ROC and BUF 

where the average savings on a one-way basis equated to $37.47 and $56.37, respectively, 

over the past year.6 

Higher Fares: A Chronic Market Condition at SYR

It is important to point out the higher fares at SYR for the year ending March 31, 2010 are not a 

singular occurrence, but rather are indicative of a long-term market trend that has negatively 

impacted enplanement levels at Syracuse Hancock International Airport. This is illustrated on 

the graph on the next page which shows average OW gross fares by quarter beginning in the 

first quarter of 2007. 

 

 

6

 Note that despite the presence of Southwest Airlines, the fare differential between SYR and ALB is the lowest. This is believed to 

be due to large number of last-minute tickets purchased due to Albany’s role as the state capital and having a higher percentage of 

business travelers relative to the other Thruway Corridor markets. 
 

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Average OW Gross Fare Trend

Thruway Corridor Airports: 1Q2008-1Q2010

NOTE: Average OW fare includes taxes and fees (i.e., segment fee, security, PFC, etc.) SOURCE:

$145.75

$144.45

$148.76

$154.62

$161.32

$164.05

$168.54

$157.28

$145.03

$138.26

$142.80

$152.45

$159.85

$168.98 $171.40 $172.50

$176.24

$186.52

$197.99

$195.84

$177.34

$162.94

$160.44 $161.15

$169.94

$175.93

$194.11

$196.33

$204.04

$207.38

$213.01

$232.04

$228.52

$210.99

$198.37

$193.11

$204.51

$207.88 $210.92

$187.30 $185.04

$190.87 $194.69

$197.23

$209.36

$220.26

$201.75

$181.86

$183.72

$197.96

$202.54

$210.31

$120.00

$140.00

$160.00

$180.00

$200.00

$220.00

$240.00

1Q 20072Q 20073Q 20074Q 20071Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 20091Q 2010

BUF ROC SYR ALB

Average OW Gross Fare Paid – All Passengers/All Markets

The SCASD grant funds requested in this proposal will be utilized to recruit additional low-fare 

service to SYR thereby closing (and potentially eliminating) the average fare differential with 

other Thruway Corridor airports.

The Canadian Factor 

A positive factor for Syracuse Hancock International Airport is the ability to draw passengers 

from across the Canadian border that seek to avoid much higher levels of taxation on air 

transportation than in the United States. A comparison of air fare and taxes is provided on the 

below and illustrates why Canadian travelers are making the drive to SYR and other airports. 

Base Fare $522.51 Base Fare $380.17

GST $27.99 US Excise Tax $30.83

HST $5.95 Federal Segment Tax $14.80

AIF $48.00 PFC $18.00

ATSC $23.08 9/11 Security Fee $10.00

US Taxes and Fees $50.78

Nav/Ins. $15.00

TOTAL $693.32 TOTAL $453.80

Effective Tax Rate 32.7% Effective Tax Rate 19.4%

NOTE: All figures in USD

jetBlue

Ottawa Departure

Orlando: Departing Oct 8, Returning Oct18

Westjet

SOURCE: carrier w ebsites

Syracuse Departure
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 19 

The phenomenon of Canadians crossing the border to avoid taxes on air transportation is not 

unique to SYR. A number of other airports are experiencing similar benefits including Burlington, 

VT (BTV); Plattsburgh, NY (PBG); Buffalo, NY (BUF); Bellingham, WA (BLI); and Spokane, WA 

(GEG). 

While Canadian travelers coming across the border to avoid taxes on air travel is a benefit for 

Syracuse Hancock International Airport, it is important to emphasize that these passengers also 

have the choice of using the other Thruway Corridor Airports, and often do. In this context, the 

potential to attract Canadian travelers should not be interpreted as minimizing the need of 

Syracuse Hancock International Airport for the SCASD grant funds requested in this proposal. 

Negative Enplanement Trends at SYR 

Notwithstanding the positive notes above regarding use of Syracuse Hancock International 

Airport by Canadian travelers, the overall impact on enplanements of the air service deficiencies 

discussed in this section of the proposal has been extremely negative. In fact, SYR is on track 

to end the current decade with fewer annual passenger enplanements than at the beginning. 

SYR Enplanement Trend

CY 2000- CY 2009

1,069,123

1,024,227

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SOURCE: City of Syracuse, Department of Aviation

Note that in the middle of decade, Syracuse Hancock International was able to generate a brief 

spike in passenger enplanements. This was the direct result of a comprehensive marketing 

program that the airport and its community were able to implement as the result of an earlier 

SCASD grant (discussed below). Unfortunately, market conditions outside the control of 

Syracuse community including high fuel prices, bankruptcies, consolidation, and economic 

recession have prevented this from being a sustained success. 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 20 

The airport and its community partners are ready and able, however to implement the same 

level of effective partnership to ensure that the SCASD funds are translated in sustainable 

improvements in the overall capacity and pricing environment at Syracuse Hancock 

International Airport and therefore request that the Department act favorably on this proposal. 

Previous Air Service Development Activities at SYR 

The City and CenterState CEO understand the critical role that air transportation plays in 

economic development and quality of life, and are committed to improving the quantity and 

quality of air service available at Syracuse Hancock International Airport. The City and 

CenterState CEO have cooperatively pursued an aggressive air service development program 

over the past several years, with the objective of securing new and improved services in 

underserved Syracuse markets. 

These activities include on-going dialogue with incumbent and potential new entrant airlines to 

the Syracuse market, participation in industry events including “speed dating” conferences that 

provide opportunities for meetings with potential new carriers, public relations activities including 

a public art program, and cooperative advertising events. 

The City has also has an on-going “air service marketing program” under which marketing 

support and fee/rent discounts are available to airlines that bring new lower-fare, non-stop 

service to key markets. The benefits of the marketing program are available to both incumbent 

and new entrant airlines in a non-discriminatory manner, if the new service meets specific 

eligibility criteria. 

Earlier SCASD Grant Award

Many of the advertising and promotional activities referenced above were able to be 

implemented as a direct result of a SCASD grant that the Department awarded in 2004. This 

earlier grant provided funding for an extensive marketing program focused around the theme of 

“Fly Syracuse” and which, as noted earlier, had success in increasing passenger enplanements 

at Syracuse Hancock International Airport. Unfortunately, significant events outside the control 

of the City and its community partners (i.e., spike in fuel prices, economic recession, airline 

bankruptcies) have handed this program a setback in terms of measurable success. 

Nonetheless, the City and CenterState CEO remain committed to the “Fly Syracuse” program. 

The project for which the SCASD grant funds are requested in this proposal is materially 

different in that it seeks to provide revenue guarantees for new, low-fare service at SYR, 

whereas the previous grant award was intended to increase local use of the airport through 

marketing activities.7

 

7

 Note that community partners are providing $250,000 worth of “in-kind” marketing support for new service which may be initiated 

using risk abatement funds requested in this proposal. These funds are specific to this project and are intended to ensure that the 

new service is successful and requires the least amount of risk abatement funding. This marketing activity, therefore, does not 

overlap with the objectives of the “Fly Syracuse” program. 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 21 

Plan to Address Air Service Deficiencies 

Recapping the Challenge Facing SYR 

To this point in the proposal, the City has identified numerous air service deficiencies at 

Syracuse Hancock International Airport which contribute to significant levels of traffic leakage. 

To recap, major deficiencies are: 

• Lowest percentage of LCC capacity among all Thruway Corridor Airports; 

• Lowest percentage of overall capacity among all Thruway Corridor Airports being 

provided by mainline aircraft; 

• Highest average OW gross fares among all Thruway Corridor Airports; 

• A steady decline in overall capacity as measured by number of seats being offered in the 

market; 

• Relatively high load factors which inhibit the ability of Central New York residents and 

businesses to obtain competitive a fare at SYR; and

• Limited access to hubs providing westbound connectivity, particularly relative to Albany 

which has nonstop service to Las Vegas, and Buffalo which has nonstop service to Las 

Vegas and Phoenix. 

The City and its community partner, CenterState CEO, believe that recruitment of additional 

low-fare service can rectify many of these deficiencies by creating a much stronger competitive 

environment at Syracuse Hancock International Airport. This will, in turn, “level the playing field” 

between SYR and its Thruway Corridor Airport peers and reduce overall levels of traffic 

leakage. 

Plan to Address Deficiency 

The City also recognizes, however, that airlines are increasingly reticent to initiate service at a 

new market without a reasonable level of risk abatement funding to fund potential early losses. 

Indeed, this is often a point of discussion when the City and CenterState CEO meet with carriers 

about the potential of launching new service at SYR. 

For this reason, the City is requesting a Small Community Air Service Development grant in the 

amount of $1,000,000, to be matched with $300,000 in cash provided by the City’s partner, 

CenterState CEO. The risk abatement funds will be supplemented by the City with airport fee 

waivers valued at approximately $750,000 plus an additional $250,000 worth of “in-kind” 

marketing support provided by other community partners. In total, the project contemplated in 

this grant proposal will result in funding of approximately $2.3 million available to address the 

identified air service deficiencies at Syracuse Hancock International Airport. 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 22 

Objective: Access to An Additional Low-Fare Airline Network 

As discussed, the objective of the City and its community partner is to recruit an additional lowfare carrier that creates a stronger competitive environment at Syracuse Hancock International 

and have identified the following candidates: 

• AirTran Airways: Daily service to Baltimore/Washington; 

• Frontier Airlines: Less-than-daily service to Denver and/or daily service to Milwaukee; 

• Southwest Airlines: Daily service to Baltimore/Washington and/or Chicago (Midway); 

and 

• Spirit Airlines: Daily service to Fort Lauderdale.8

It is important to note that above list is not speculative in nature. The City and/or CenterState 

CEO have held discussions with each of the carriers listed and some have agreed to provide 

letters of support for this proposal under separate cover and on a confidential basis. 

Each of the potential options is discussed briefly over the following pages, along with an 

illustration of the likelihood for sustained profitability based on a forecast prepared by a 

nationally-recognized air service development consultant. The carriers and routes are presented 

in no particular order of preference or stage of discussions. 

It is important to note that the City is requesting in this proposal the flexibility to negotiate with

more than one carrier, taking into account changing strategies at each which may advantageous 

to the City depending on the timing by the Department of grant awards. For this reason, the 

proposal herein is not specific to one carrier but rather focused on multiple options for 

addressing the identified deficiency. 

 

 

8

 With the exception of Frontier Airlines, all of the carriers listed above have a significant presence at Orlando. The risk abatement 

funds requested in this proposal would not be available for MCO service as this route is already flown by jetBlue Airways. The same 

applies to the exclusion of AirTran service to ATL, a route that is already flown by Delta Air Lines. It noted that both AA and UA 

provide service from SYR to Chicago’s O’Hare International Airport and that if the City is successful in recruiting Southwest Airlines 

service would be Midway Airport, which serves a different local market. Nonetheless, the City would consult with the Department 

before agreeing to provide risk abatement funding for SYR-MDW service. 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 23 

AirTran Airways – Baltimore (BWI) 

AirTran Airways service to Baltimore-Washington International Airport would restore service to 

BWI that was previously operated by US Airways. As noted earlier in this application, Syracuse 

Hancock International Airport is the only Thruway Corridor Airport and the largest city in the 

northeast without nonstop service to BWI 

AirTran service to BWI is projected to be profitable operation generating a 12.8% operating 

margin on a steady-state basis. Service is assumed to be operated three times daily (reduced 

frequencies on weekends) Boeing 717 equipment seating 117 passengers. 

Projected Market Performance 

AirTran Airways @ SYR 

Although risk abatement funds are not requested for the purpose of Atlanta service given that 

Delta Air Lines already operates SYR-ATL on a nonstop basis, it is anticipating that the 

presence of AirTran in Syracuse would have the desired effect of placing downward pressure on 

Atlanta fares. The cost of travel to/from Atlanta (particularly relative to ROC) is a continuing 

challenge for the Central New York business community. 

 

Carrier AirTran

Route SYR-BWI

Key Operating Metrics

Sector Length (sm) 273

Aircraft Type Boeing 717

Seats per Departure 117

Weekly Segments 34

Completion Factor 99.0%

Estimated Block Time 1.1

Operating Revenues

Local Passengers 44,590

Average Fare $83.80

Local Revenues $3,736,708

Connecting Passengers 83,749

Average Revenue Allocation $51.20

Prorated Connecting Revenues $4,287,801

Ancillary Revenues $802,451

Annual Sector Revenues $8,826,959

Operating Expenses

Estimated CASM $0.140

Sector Cost $4,471.74

Cost per Block Hour $4,065.22

Annual Sector Operating Costs $7,826,976

Projected Operating Profit/(Loss) $999,984

Operating Margin 12.8%

Load Factor 62.7%
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 24 

Frontier Airlines – Denver (DEN) and/or Milwaukee (MKE) 

Frontier Airlines service would provide Syracuse area travelers with enhanced connectivity to 

the western United States via either of its hubs at Milwaukee or Denver. Traffic and revenue 

forecasts for Frontier service have been prepared showing on a steady-state basis that service 

to either hub can be profitable assuming recapture of traffic currently leaking to other Thruway 

Corridor Airports and stimulation of net-new traffic resulting from the introduction of lower fares. 

Projected Market Performance 

Frontier Airlines @ SYR

Note that DEN service is projected to have a limited amount of connecting traffic. This is due to 

the fact that Denver service is assumed to be less than daily, consistent with the strategy that 

Frontier has implemented in a number of markets of similar size, including Newport News, 

Grand Rapids, and Des Moines. Given the less than daily nature of the service, it assumed that 

Frontier’s ability to capture market share among connecting flows would be limited. 

 

Carrier Frontier Frontier

Route SYR-MKE SYR-DEN

Key Operating Metrics

Sector Length (sm) 595 1,487

Aircraft Type ERJ-145 EMB-190

Seats per Departure 50 100

Weekly Segments 42 8

Completion Factor 99.0% 99.0%

Estimated Block Time 1.7 2.9

Operating Revenues

Local Passengers 20,993 28,224

Average Fare $105.98 $157.40

Local Revenues $2,224,761 $4,442,265

Connecting Passengers 63,053 8,118

Average Revenue Allocation $136.25 $148.63

Prorated Connecting Revenues $8,590,827 $1,206,523

Ancillary Revenues $1,297,871 $677,855

Annual Sector Revenues $12,113,458 $6,326,643

Operating Expenses

Estimated CASM $0.182 $0.099

Sector Cost $5,414.50 $14,721.30

Cost per Block Hour $3,185.00 $5,076.31

Annual Sector Operating Costs $11,707,015 $6,062,820

Projected Operating Profit/(Loss) $406,443 $263,822

Operating Margin 3.5% 4.4%

Load Factor 77.7% 88.2%
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 25 

Southwest Airlines – Baltimore (BWI) and/or Chicago (MDW) 

As with AirTran Airways, Southwest Airlines service to Baltimore-Washington International 

Airport would restore service BWI that was previously operated by US Airways. As noted earlier 

in this application, Syracuse Hancock International Airport is the only Thruway Corridor Airport 

without nonstop service to BWI. Consistent with Southwest’s practice of initiating service to a 

new city from more than one hub, a forecast for Chicago Midway service was prepared as well. 

Projected Market Performance 

Southwest Airlines @ SYR 

Southwest Airlines service at Syracuse is projected to be profitable to both MDW and BWI, 

generating operating margins of 9.0% and 8.1%, respectively. Note that in both cases, the local 

market is projecting to be stimulated significantly above reported historic O&D levels which is 

consistent with the “Southwest Effect.” 

Carrier Southwest Southwest

Route SYR-BWI SYR-MDW

Key Operating Metrics

Sector Length (sm) 273 600

Aircraft Type 737-700 737-700

Seats per Departure 137 137

Weekly Segments 48 42

Completion Factor 99.0% 99.0%

Estimated Block Time 1.1 1.6

Operating Revenues

Local Passengers 35,657 39,489

Average Fare $83.80 $130.23

Local Revenues $2,988,108 $5,142,652

Connecting Passengers 191,012 174,313

Average Revenue Allocation $51.80 $75.43

Prorated Connecting Revenues $9,895,193 $13,148,901

Ancillary Revenues $901,831 $1,280,409

Annual Sector Revenues $13,785,132 $19,571,962

Operating Expenses

Estimated CASM $0.138 $0.101

Sector Cost $5,161.34 $8,302.20

Cost per Block Hour $4,692.13 $5,188.88

Annual Sector Operating Costs $12,753,873 $17,950,685

Projected Operating Profit/(Loss) $1,031,260 $1,621,277

Operating Margin 8.1% 9.0%

Load Factor 67.0% 72.2%
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 26 

Spirit Airlines – Fort Lauderdale (FLL) 

Spirit Airlines service to Fort Lauderdale would restore nonstop service that was previously 

operated by jetBlue Airways, and provide low-fare connectivity to numerous destinations in the 

Caribbean and Latin America. 

SYR-FLL service is projected to be profitable on a steady-state basis, generating an annualized 

operating margin of 5.2% assuming a single-daily rotation using A320 aircraft configured for 172 

seats. 

Projected Market Performance 

Spirit Airlines @ SYR 

Carrier Spirit

Route SYR-FLL

Key Operating Metrics

Sector Length (sm) 1,198

Aircraft Type A320

Seats per Departure 172

Weekly Segments 14

Completion Factor 99.0%

Estimated Block Time 2.4

Operating Revenues

Local Passengers 70,838

Average Fare $101.86

Local Revenues $7,215,250

Connecting Passengers 32,662

Average Revenue Allocation $131.84

Prorated Connecting Revenues $4,306,231

Ancillary Revenues $2,073,867

Annual Sector Revenues $13,595,348

Operating Expenses

Estimated CASM $0.087

Sector Cost $17,926.87

Cost per Block Hour $7,469.53

Annual Sector Operating Costs $12,920,255

Projected Operating Profit/(Loss) $675,093

Operating Margin 5.2%

Load Factor 83.5%
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 27 

Program Administration Plan 

The City is well aware that the Small Community Air Service Development program has limited 

funding and, therefore, that the Department must award grant funds where the ability to resolve 

an identified air service deficiency on a sustainable level can be achieved. The City believes 

that it has made such a case in this proposal. 

If the Department acts favorably upon this proposal, the City and its community partner are 

prepared to implement a detailed program ready to assure successful use of SCASD grant 

funds in timely manner and applying the same level of cooperation that resulted in successful 

application of SCASD funds following award of the grant in 2004. 

Proposed Use of Grant Funds 

The City of Syracuse, Department of Aviation and CenterState CEO respectfully request a grant 

in the amount of $1,000,000 to provide a risk-abatement fund to be used for the recruitment of a 

low-fare carrier into the SYR market. The SCASD grant funds will be supplemented with 

$300,000 provided by the City’s community partner, CenterState CEO. Combined, the $1.3 

million will be utilized to provide an adequate risk abatement fund for initiation of low-fare 

service at Syracuse. The risk abatement funds will be supported by the City with airport fee 

waivers valued at approximately $750,000 plus an additional $250,000 worth of “in-kind” 

marketing support provided by other community partners, primarily media companies. 

In total, the project contemplated in this grant proposal will result in funding of approximately 

$2.3 million available to address the identified air service deficiencies at Syracuse Hancock 

International Airport. The proposed allocation of SCASD and matching community funds is 

summarized on the following table 

Proposed Allocation of SCASD & Matching Funds 

Syracuse Hancock International Airport 

Program Management 

Immediately upon grant award, the City in cooperation with its community partner will 

immediately initiate discussions with the carriers identified in this proposal regarding the 

availability of risk abatement and supporting marketing funds, as well as to reinforce the 

opportunity in the Syracuse market. 

It is the City’s goal that these discussions will translate rapidly with one or more carriers into 

negotiations of service levels and performance guarantees in exchange for eligibility for risk 

abatement funds. At a minimum, these discussions will include the following: 

 

Source of Funding Risk 

Abatement

% of 

Total

Marketing & 

Promotion

% of 

Total Fee Waivers % of Total TOTAL % of Total

SCASD Grant $1,000,000 76.9% $0 0.0% $0 0.0% $1,000,000 43.5%

Matching Community Funds - CenterState CEO $300,000 23.1% $0 0.0% $0 0.0% $300,000 13.0%

Marketing & Promotion - Community Partners $0 0.0% $250,000 100.0% $0 0.0% $250,000 10.9%

Fee Waivers - City of Syracuse $0 0.0% $0 0.0% $750,000 100.0% $750,000 32.6%

TOTAL $1,300,000 100.0% $250,000 100.0% $750,000 100.0% $2,300,000 100.0%
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 28 

• Revenue and operating expense expectations for the new service will be based on the 

level of service provided (frequencies, equipment, schedule, etc.); 

• Fares to be offered are competitive with those at other Thruway Corridor Airports, with 

particular emphasis on Greater Rochester International Airport which is the nearest to 

SYR; 

• Schedules timed for maximum connectivity thereby maximizing the number of markets 

impacted by low-fares; 

• On-time performance and completion rates will be consistent with the carrier averages; 

• Credit to SYR of all revenue generated by local passengers to the connecting hub; 

• A pre-determined percentage of revenues for connecting passengers beyond the 

connecting hub credited to SYR according to a industry-standard practices, such as 

square root of mileage; and 

• The carrier will serve the Syracuse market for the duration of the term that SCASD funds 

are available, allowing sufficient time for the route to achieve stand-alone profitability. 

The above negotiations will be used as the framework for the City enter into an agreement that 

includes a formula for calculating SYR segment operating expenses, revenue credit, and 

operational performance standards. Prior to executing any agreement, however, the City will 

provide documents to Department staff for review and approval. 

Finally, it is important to note that the $1.3 million in risk-abatement funding will be based on 

pre-determined quarterly maximums. The requested funding is not a subsidy, but rather a safety 

net intended for use only if negotiated revenue goals are not achieved. In this context, it is 

possible that the entirety of the SCASD funds requested in this proposal may not need to be 

expended. 

Promotional Support for New Service 

To assure that traffic on recruited service builds rapidly, other community partners comprised 

primarily of media companies (i.e., cable and broadcast television, print, radio, outdoor, 

advertising agencies, etc.) are provided $250,000 worth of “in-kind” marketing support. As 

currently envisioned, this will include: 

• A targeted media and direct mail program, aimed at key travel generators in the region 

• Mass media, including newspaper and billboard outlets, to announce the service and to 

build brand identity in the region 

• Cooperative activities as determined by the carrier, focusing on key travel segments. 

The overall media and marketing plan will be provided to the U.S. Department for approval prior 

to implementation. 

 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 29 

Project Timeline 

While the City and its community partner intend to initiate discussions with carriers immediately 

following notice of grant award, the variability of the airline industry means that it could take a 

while to recruit a carrier a negotiate an agreement that both addresses the air service 

deficiencies at SYR while also providing adequate protections of all parties funding. Given this, 

the City respectfully requests up to 24 months from the date of the grant award to enter into an 

agreement with a low-fare carrier. 

Project Monitoring 

Working closely, the Department of Aviation and CenterState CEO will monitor traffic levels on 

new services on a monthly basis, and will be poised to take remedial action should traffic levels 

fail to meet projections. Such actions include analyses of fare and competitive data, preparation 

of targeted marketing efforts, and working with the airline regarding adjustments to scheduling, 

pricing, or reliability. 

Continuation of Project Activities After The Grant Period 

Based on its extensive analyses, the community is confident that the high levels of current 

leakage to ALB, ROC, and BUF can be reversed and that additional low-fare service can be 

self-sustaining at Syracuse Hancock International Airport, 

Nevertheless, events in the airline industry and/or the national economy outside the direct 

control of Syracuse community have to potential to result in a longer period for the market to 

reach maturity with respect to revenues and/or passengers. In such a case, the Department of 

Aviation and its community partners are prepared to work with the carrier to address options to 

support the service beyond the period of the grant. These include additional local incentives, 

promotional programs, and targeted marketing efforts on key travel generators. 

These actions are consistent with the Department of Aviation’s current approach to air service 

development and retention. 

 

 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 30 

Appendix B 

 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 31 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 32 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 33 

 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 34 

Letters of Support 

 
 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 35 


 

 Proposal Under The Small Community Air Service Development Program 

 OST-2010-0124 Page 36